Oil prices fall on OPEC output increase, rising US crude stocks

Oil prices fall on OPEC output increase, rising US crude stocks

WTI was trading up 0.8% at $46.45 per barrel at 3:11pm EST-more than $1.50 per barrel lower than a week ago-with Brent trading at $48.74, compared to $50.05 per barrel last week.

Data from the American Petroleum Institute showed on Tuesday that usa crude stocks rose by 2.8 million barrels in the week to June 9 to 511.4 million, compared with expectations for a decrease of 2.7 million barrels.

LONDON, June 14 (Reuters) - Oil prices fell on Wednesday after industry data showed a build in US crude stocks and OPEC reported a rise in its production despite a pledge to cut output.

Crude prices have fall by more than 10 percent since late May, pulled down by a supply glut that persists.

Adding to the supply surplus is rising US production from shale drillers that has pushed USA output up by 10 percent over the past year to 9.3 million bpd, not far below levels by top exporter Saudi Arabia, Reuters reported.

Those efforts thus far have largely not succeeded.

"Although oil prices rebounded from five-month lows in (mid-May), following positive United States jobs data and assurances by Saudi Arabia that Russian Federation is ready to join OPEC in extending production adjustments to reduce a persistent supply glut", OPEC said in its monthly report.

OPEC's monthly report showed output from the group rose by 336,000 bpd in May to 32.14 million bpd, led by a recovery in Nigeria and Libya which are exempt from supply cuts. Prices have averaged higher so far this year, at around $51.8 a barrel. The report said the market was rebalancing at a "slower pace".

Nevertheless, increased output in the USA was getting in the way of the rebalancing process, OPEC complained.

Trade data show Opec shipments to customers averaged around 26 million bpd in the last six months of 2016 and are set to average around 25.3 million bpd in the first half of this year.

The last time this happened, in mid-2014, it was a precursor to a massive selloff in oil that dropped Brent from US$108 a barrel to about US$47 a barrel in the span of five months.

Indeed, the U.S. Energy Information Administration reports that shale production will jump again in July by 127,000 bpd to 5.5 million bpd, with the biggest gains coming from the Permian basin in west Texas.

Meanwhile, U.S. drilling activity has continued apace RIG-OL-USA-BHI, driving up U.S. output C-OUT-T-EIA by more than 10 percent since mid-2016 to above 9.3 million bpd.

Related Articles

  • North Korea frees American student; parents say he's in coma

    US officials appeared to brush aside any speculation of a connection between Rodman's controversial visit and Warmbier's release . The Warmbiers have been relentlessly pressing - first behind the scenes and then more publicly - for their son's release.
    South Korea President to meet with Donald Trump at White House: Statement

    South Korea President to meet with Donald Trump at White House: Statement

    They found that it had taken hundreds of photos, including ten of the defense system. North Korea has made two appearances at the World Cup , 1966 and 2010.
    Cameron Diaz gushes over husband: 'I feel so lucky'

    Cameron Diaz gushes over husband: 'I feel so lucky'

    The American beauty went on to explain that her husband of two years supports and treats her as an equal in their relationship. Diaz has no upcoming films on her schedule and showed no signs of changing that.
  • US, NK officials ahead of student's release

    He told reporters in Beijing, as he departed for Pyongyang, that he hopes his trip will "open a door" for Mr Trump. A team was dispatched to Pyongyang and the sick University of Virginia student was handed over to US officials.

    Warriors' Game 5 win wraps up highly-watched NBA Finals

    Stephen Curry and Kevin Durant were unstoppable carrying the team to their nine-point victory. And it also helps when you are able to experience some things with this team as well.
    Trump Says Comey Lying, Willing to Speak Under Oath

    Trump Says Comey Lying, Willing to Speak Under Oath

    U.S. attorney general Jeff Sessions testifies today (June 13, 2:30pm EDT) in front of the Senate intelligence committee. Democratic senator Martin Heinrich said during the hearing, "a lot of this comes down to who should we believe".
  • E3 2017: Ancient Egypt Is Your Sandbox In 'Assassin's Creed Origins'

    For everyone else watching at home, the game will be launching on August 29 , 2017, which isn't very far away. Steep is getting an expansion this December that will feature many sports from the 2018 Winter Olympics.

    Durant shines as Warriors win title

    Golden State just capped off the best postseason run in National Basketball Association history . "I'm happy for him", Curry said. Meanwhile, Durant was named 2017 NBA Finals MVP for averaging 35.2 points, 8.4 rebounds and 5.4 assists through five games.

    The Card Factory PLC (CARD) Insider Sells £13160000 in Stock

    Buckhead Capital Limited Liability Company stated it has 0.12% of its portfolio in EverBank Financial Corp (NYSE:EVER). The investment professionals in our database now own: 15.53 million shares, down from 17.71 million shares in 2016Q3.
  • Pedroia's single wins it in 11th; Red Sox beat Phillies 6-5

    Pedroia's single wins it in 11th; Red Sox beat Phillies 6-5

    Monday night's 6-5 win over the Phillies in 11 innings was the closest thing this season to the ideal vision of the Sox offense. Casey Fien got the call next, the game now tied 5-5 in the eighth, and lasted through two innings without allowing a run.
    Liverpool join race to sign 18-year-old Hull City defender

    Liverpool join race to sign 18-year-old Hull City defender

    The 18-year-old enhanced his growing reputation by helping England's under-20s win the Touloun Tournament in France this month. The 18-year-old is yet to agree a professional contract with the Tigers despite breaking into their first-team last season.

    May tough on terror in France visit

    Macron chose Berlin for his first trip overseas as president, holding talks with Merkel just days after taking office last month. May traveled to Paris on Tuesday to hold talks on counterterrorism measures and Britain's departure from the European Union .